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10 November, 01:31

The annual profit a company makes by selling computers is 17 million dollars and increasing at a rate of 5/% per year. The number of computers it sells per year is 3000 and increasing by 600 per year. (a) What is the average profit per computer sold

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  1. 10 November, 03:54
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    Average profit per computer sold

    Current:

    Average profit per computer sold = Income from sale of Computer / No. of computer sold

    Average profit per computer sold = $17,000,000 / 3000 = $5,667

    After growth:

    Sales = $17,000,000 x 105% = 17,850,000

    Number of Computers = 3000 + 600

    Average profit per computer sold = Income from sale of Computer / No. of computer sold

    Average profit per computer sold = $17,850,000 / 3600 = $4,958
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